Is The AI Bubble Going To Pop? Nvidia CEO Answers The Hard Questions

0:00Hello, everyone. The NVIDIA CEO, he went on Joe Rogan's podcast yesterday, and he got asked the tough, tough questions. BlackRock Larry Fink, he just admitted he was wrong. and Sam Altman, the golden boy. He's reportedly trying to compete with SpaceX. We're live today from the desk of Anthony Pompliano.

0:26Before we get into today's episode, I need your help. We're at 40 ,201 subscribers. We're chugging along, but my goal is to get to 1 million. Hit the subscribe button, help us out. Let's get into today's show. Artificial intelligence. Everyone knows that this thing is real. The technology works. People are starting to use it more often, but there's a lot of questions about how exactly is artificial intelligence gonna get funded? Can these big companies actually afford all the money they're spending? How are we gonna get all the data, the data centers and all of the chips that we need? There's national security implications and there's consumer behavior changes that are underway.

1:03Artificial intelligence is driving the stock market, but it's also driving lots of questions about whether a big market downturns right around the corner. That's the beauty of controversy. That's how markets get made. There's bulls and there's bears. There's believers and there's doubters. And artificial intelligence is sitting at the middle of all of it. But Jensen Wang, he's the king of AI. Some people call him the godfather of artificial intelligence. He recently went on Joe Rogan's podcast, and he had two things to say that really caught my attention. The first is that Jensen credits President Trump and the administration with single-handedly saving artificial intelligence.

1:38That's a big, bold statement, but Jensen sees that this is a national security concern. He thinks that America must lead in artificial intelligence, and he thinks that the president, whether it's a Republican, a Democrat, or an independent, we need the president and the administration to be fully behind artificial intelligence being a national priority. Take a listen to how Jensen described this. If United States doesn't grow, we will have no prosperity we can't invest in anything domestically or otherwise we can't fix any of our problems if we don't have energy growth we can't have industrial growth if we don't have industrial growth we can't have job growth these it's as simple as that right and the fact that the fact that he came into office and the first thing that he said was drill baby drill Well, his point is we need energy growth.

2:29Without energy growth, we can have no industrial growth. And that was, it saved, it saved the AI industry. I got to tell you flat out, if not for his pro-growth energy policy, we would not be able to build factories for AI, we'd not be able to build chip factories, we surely won't be able to build supercomputer factories. None of that stuff would be possible. Without all of that, construction jobs would be challenged, right? Electrical, you know, electrician jobs, all of these jobs that are now flourishing would be challenged. And so I think he's got it right. We need energy growth. We want to re-industrialize the United States.

3:07We need to be back in manufacturing. Every successful person doesn't need to have a PhD. Every successful person doesn't have to have gone to Stanford or MIT. And I think that that, you know, that sensibility is spot on. All right. So we know that artificial intelligence, it's real. We know that now the government's behind it. And that's a good thing because it becomes a national priority. But the big question, the critique from all of the doubters, how the heck are we going to be able to power all of this stuff? How are we going to be able to fund all of the infrastructure that we need to actually run this?

3:40Well, Jensen, he's probably got more information on this than anyone else. He sits at the nexus of all of these people building in this industry. And he told Joe Rogan exactly how he thinks we're going to power it. Take a listen. So currently that is a big bottleneck, right? Is energy? Yeah. It is the bottleneck. The bottleneck. So was it Google that is making nuclear power plants to operate one of its AI factories? Oh, I haven't heard that. But I think in the next six, seven years, I think you're going to see a whole bunch of small nuclear reactors. And by small, like how big are you talking about?

4:14Hundreds of megawatts, yeah. Okay. And that these will be local to whatever specific company they have? That's right. We'll all be power generators. Whoa. You know, just like somebody's farm. It probably is the smartest way to do it, right? And it takes the burden off the grid. It takes, and you could build as much as you need. Now, that's a pretty interesting idea, is rather than go build large-scale infrastructure and get tons and tons of power like we used to do in the olden days, Jensen thinks small reactors is going to be the path forward. It's going to be interesting to see that. Now, regardless of what you think about his views on the reactors, what I do know is that NVIDIA is doing just fine.

4:56I recently saw somebody say, Jensen seems to be doing a lot of podcasts. He's all over the news all the time. Keith Reboy, famous investor, he said, don't worry, it seems to be working. If we go and we take a look at this chart here from Public, it shows that in the last year, NVIDIA is up 25%. It's pretty good. But even better than that is the company is up 1 ,200 % in the last five years. Whatever Jensen's doing, whatever he's building this company for, it seems like shareholders are winning. Now, it's no secret to everybody. Wall Street, they haven't been the biggest fan of Bitcoin and cryptocurrencies.

5:31At first, they ignored it. They were just like, let these kids play on the Internet. Let them go and lose all their money. Then all of a sudden, they got a little nervous. It looked like Bitcoin and cryptocurrencies were going to become a thing. And so they started to fight it really hard. They went and they tried to use regulatory capture. They tried to weaponize the justice system. And they simply did everything that they could to mitigate the threat that cryptocurrency provided. But here's the thing. These people are smart. It's easy to yell and scream and say, oh, they're so stupid. Trust me.

5:58Anyone who's rolling a multi-billion dollar company, they're not dumb. And Larry Fink, he has completely changed his mind. He now believes in Bitcoin. They've launched the Bitcoin ETF, which is the most successful product launch in the history of Wall Street, the Bitcoin ETF is now the most profitable product at BlackRock. And on top of that, Larry Fing's not above admitting that he got something wrong. Take a listen to what he had to say yesterday at the DealBook Summit with Andrew Ross Sorkin. Called crypto an index for money laundering. BlackRock and thieves and thieves. Yes. Money laundering and thieves.

6:34You now have the biggest Bitcoin ETF. So what happened here? I have very strong views, but that doesn't mean I'm not wrong. But by having strong views, you have to test yourself and ask yourself. And, you know, in my role, I see, you know, thousands of clients a year. I have, you know, governmental leaders and we have these conversations that my thought process always evolves. And this is a very glaring public example of a big shift in my opinion. Now, here's my big takeaway from this is that it's a sign of intelligence when somebody gets new information and changes their mind. That's what Larry's doing here.

7:16But this is the thing that I think people should be paying attention to. Cryptocurrency and Wall Street, they aren't going to be two different things in the future. Crypto will be dead within a decade. You're going to see finance become the term that everyone talks about because these big firms, they're starting to adopt stable coins and Bitcoin and all of the crypto plumbing. And it's simply going to replace the old antiquated technology. But you as a user, you're going to use dollars, you're going to use store value assets, you're going to trade public equities, and you're simply going to move economic value all around the world.

7:48You don't care whether it's the antiquated technology or it's the crypto rails. All you know is things got faster and cheaper. And now Wall Street, they're onto the game and they're not going to let this pass them by. Business is a game of be disrupted or evolve. And these guys, they're going to evolve, they're going to adopt this technology and they're going to create massive amounts of profits for themselves and for their shareholders. All right, this is kind of crazy. The Wall Street Journal has got a new report. It's talking about OpenAI Chief Executive Sam Altman, the golden boy of tech. They say that he's explored putting together funds to either acquire or partner with a rocket company.

8:27They claim that this move would position him to compete against Elon Musk's SpaceX. They say that Altman reached out to at least one rocket maker, Stokes Space, in the summer, and the discussions picked up in the fall according to people that are familiar with the talks. Who knows? Maybe it's a leak from Sam, maybe it's somebody else, but that's what they're reporting. They say among the proposals was OpenAI to make an equity investment in the company and end up with a controlling stake. And such an investment would take billions of dollars over time. Now, the talks are no longer active, OpenAI is claiming, and now it looks like this was simply an exploratory conversation.

9:00But here's my takeaway. The first thing you can't deny, Sam Altman is incredibly ambitious. This guy is going for the jugular. If there's a business and AI can be involved, he wants to be a part of it. Kudos to him. The second thing is, it sounds insane to try to compete with SpaceX. In America, we have reusable rockets. We're the only country in the world that's been able to do this. We now have two companies that have been able to do it. We have SpaceX and we have Blue Origin. But the thing about it is that Elon's been working on this for 25 years. Jeff Bezos, he's a pretty formidable entrepreneur.

9:34He also has been working at this for years and years and years. This is not like software where you just go in a room, write some code, launch it, and it goes viral. You have to go build with real atoms in the real world. So seeing someone wanna compete with SpaceX, but it not be their full-time job, that seems pretty difficult to me. And so I love the idea of competition. I love Sam Altman having access to capital, having tons of ambition, and wanting to compete in the arena. That's what makes America great. It's all about innovation that is driven through competition. Let the free market decide who is the best company, who's got the best technology, and who can provide the best solution.

10:11But I also think sometimes you got to understand where's my competitive advantage? Where should I be focused? And the second that OpenAI starts to spread themselves too thin, starts to try to get into rocketry, but also compete with other LLMs, that seems like all of a sudden you're spreading your capital, your energy, and your mental focus. And that's very, very hard to be successful. Remember, the AI race isn't over. At this time right now, OpenAI internally is talking about a code red. They're worried about Google AI and how quickly Gemini and all of the technology that Google is launching, how quickly it's catching up to OpenAI.

10:48So sometimes if you get distracted trying to go compete against somebody like an Elon Musk in SpaceX, you forget to take care of home. But in order to actually have a business in 10 years, you got to make sure that you dominate your industry, that you build the monopoly and the moat so that no one can compete with your core product. That's where all the cashflow is going to come from. And that ultimately is going to decide, is OpenAI going to be a company that's around in a decade that's worth trillions of dollars? Or is Sam Altman and OpenAI simply going to be remembered as somebody who was highly ambitious, but they were the poster boy for an AI boom and eventual bust that simply saw too much capital chasing too little of an opportunity and somebody else will end up taking home the prize in a couple of years.

11:30That's it for today's show. Thank you guys so much for watching. Please remember to subscribe on YouTube. I'm trying to get to a million subs and I need your help to get there. I'll see you guys live tomorrow from the desk of Anthony Pompliano.